Tangerine Mortgage Rates Review 2022: Are the Rates Any Good?

Tangerine Bank offers some of the lowest rates you will find in Canada by a banking institution.

First-time home buyers know how important it is to get a competitive mortgage rate that won’t break the bank. And most go for a fixed 5-year term so they can have peace of mind and not have to worry about a rise in interest rates for a while.

A competitive mortgage rate is great for folks who are also refinancing or renewing their mortgage contract. It means you save on the interest fees and can pay off your mortgage loan sooner than later.

This Tangerine mortgage review covers its fixed and variable mortgage rate offerings, pros, cons, calculators, prepayment, and preapproval terms.

About Tangerine

Tangerine Bank was founded in 1997 and was formerly known as ING Direct Canada. It is a subsidiary of Scotiabank and is one of Canada’s most popular online banks.

It offers a complete suite of personal and business banking services including:

  • Mortgage Loans and Home Equity Line of Credit
  • Savings and Chequing Accounts
  • Credit Cards
  • Investment and GICs

Tangerine Mortgage Rates

Tangerine offers both fixed-rate and variable-rate mortgages.

Compared to the big banks, Tangerine’s mortgage rates are very competitive, and you can save a lot in interest fees over time.

Its mortgage loan packages also offer unique perks that make your search for a mortgage loan a lot easier. We cover these benefits in more detail below.

Tangerine’s Fixed-rate Mortgage

A fixed-rate mortgage is a mortgage loan with a fixed interest rate that stays the same for the duration of the term. It is the most common type of mortgage in Canada.

Tangerine’s fixed mortgages are available for 1, 2, 3, 4, 5, 7, and 10-year terms.

Its fixed mortgage rates as of this update are:

  • 1-year: 5.49%
  • 2-year: 5.89%
  • 3-year: 5.14%
  • 4-year: 5.24%
  • 5-year: 5.29%
  • 7-year: 5.84%
  • 10-year: 6.24%

Annual interest is calculated semi-annually and not in advance.

GET YOUR BEST RATE.

Tangerine’s Variable-rate Mortgage

A variable-rate mortgage fluctuates throughout the mortgage term based on the bank’s prime rate.

Since the rate is not fixed, the portion of your payments that is applied to your principal also fluctuates.

Tangerine Bank only offers a 5-year variable mortgage term with a 4.40% rate (4.40% APR).

Tangerine Mortgage Rates Promotion (up to $5,000)

When you apply for a new Tangerine mortgage and are approved, you could earn a cash bonus of up to $5,000. This offer applies to new mortgage applications for a home purchase only.

To qualify for the offer, you must meet the following requirements:

  • Minimum mortgage amount of $350,000
  • Minimum 5-year term closed fixed or variable rate mortgage.
  • Maximum amortization of 25 years.
  • Your application must be submitted to Tangerine Bank between December 21, 2021 – August 31, 2022, and the mortgage must fund within 120 days of the application submission.

The Cash Bonus you get is earned as follows:

Mortgage amountBonus amount
$350,000 – $749,000 $2,000
$750,000 and Above $5,000

Tangerine Mortgage Features and Benefits

1. Great Rates: If you are looking for a competitive mortgage rate, Tangerine is a good place to start your search. The rates are also guaranteed for 120 days to give you peace of mind. If rates drop, you can apply to qualify for the lower rate.

2. Online Application: Tangerine’s mortgage application is 100% digital which means you can complete the process from the comfort of your home. You also get a dedicated account manager who can answer any questions you have.

3. Portability: All Tangerine mortgage products are portable, and this means you can transfer your mortgage to another home without penalty.

4. Flexible Prepayments: Want to pay off your mortgage fast? Tangerine allows you to make up to 25% in lump sum prepayments. You can also increase your regular payments by up to 25%.

5. Calculators: You can use Tangerine’s mortgage payment calculator to estimate your monthly payments based on various mortgage interest rates and terms. It also has a calculator you can use to estimate how much you can borrow.

Downsides

Tangerine has only one offer for variable mortgage rates. If you are looking for a 1, 2, or 3-year variable rate, you will need to look elsewhere.

Also, you must have no prior bankruptcies to qualify for a mortgage loan.

How To Apply for a Tangerine Mortgage

You can start your mortgage application here.

The basic requirements are that you must:

  • Be a Canadian resident
  • Have at least 3 months of full-time employment or 2 years of self-employment history
  • Have no prior bankruptcies
  • Have a minimum credit score of 620 with no derogatory history
  • Be applying for a mortgage loan that is $50,000 or higher

Tangerine mortgages are available to residents of Ontario, Alberta, British Columbia, Quebec, Manitoba, Saskatchewan, the Atlantic provinces, and territories.

Tangerine vs. TD vs. RBC vs. Scotiabank Fixed Mortgage Rates

Tangerine Bank’s mortgage rates are competitive when compared with the mortgage rates offered by:

  • TD Canada Trust
  • Royal Bank of Canada
  • Scotiabank
  • Bank of Montreal

Tangerine Mortgage Review FAQ

Can you negotiate mortgage rates with Tangerine?

Yes, you can potentially negotiate better mortgage rates with Tangerine and any other mortgage lender.

Is Tangerine good for mortgages?

Tangerine offers competitive mortgage rates, and if you qualify, you may even earn a cash back reward of up to $5,000.

Looking for a competitive mortgage rate in Canada? Let us know what you think in the comments.

Tangerine Mortgage Review
4.7

Summary

Tangerine offers some of the best fixed-rate mortgage interest rates in Canada. This Tangerine mortgage review covers its features, rates, pros, cons, and alternatives.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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